This is a subconjunctival hemorrhage, which occurs when a blood vessel bursts and blood leaks into the eye resulting in bloody spots. Although it is disturbing, the condition itself is rarely painful or harmful. It is usually caused by trauma or high blood pressure.
It is possible that the village headman's blood spots contribute to his role as the leader of the village. They may signify some exceptional facet of his character and therefore qualify him as a leader.